Eris Lifesciences reports 41% year-on-year rise in net profit in Q1

Eris Lifesciences, a leading branded formulations manufacturing company, reported a 41% year-on-year increase in net profit for the first quarter to Rs 125 crore, while revenue for the period stood at Rs 773 crore, an increase of 7.4% from the corresponding period last year. EBITDA for the first quarter stood at Rs 277 crore, up 11% YoY, with 36% EBITDA margin, the company said in a statement.

“Our domestic branded formulations (DBF) business has delivered a yoy growth of 11% which is over 40% ahead of market growth,” said Amit Bakshi, Chairman & Managing Director of Eris Lifesciences. “Our thesis of reorienting our DBF portfolio to high-growth segments has started delivering results. We are well positioned to ensure continuity of supply in the RHI penfill segment given the exit of the innovator,” he said.

The company created value in its acquired Biocon business which posted a Q1 operating margin of 30%, up from 19% at the time of acquisition.

“Our international CDMO business is well on track to scale up in Western Europe with several marquee customers already signed up,” said Krishnakumar Vaidyanathan, Executive Director & Chief Operating Officer.

Speaking to ET, he said: “We have outlined an aspiration that we would like to double our international business in the next three years. So, if that happens, then I think in three years from now, we will probably be getting about 15% of revenues from international. So, it will still be 85% domestic.”

The company’s net debt stood at Rs 2,317 crore as on June end. “We have guided to a target net debt of Rs 1,800 crores by the end of this year,” said Vaidyanathan.

“Right now, we are well on track to get there.”

“The next three years will be very noteworthy from an EPS acceleration and ROCE improvement standpoint as well,” he added.